September 13, 2016 -
Ecommerce firm Paytm has launched an electronic, Aadhaar-based client-authentication system in an effort to upgrade its digital wallet customers to account holders of its upcoming bank, according to a report by My Big Plunge.
The move would enable customers to perform transactions greater than Rs 10,000 (US$149.30) per month.
Paytm will offer the electronic know-your-customer system (eKYC) through Aadhaar, which is part of an initiative called India Stack.
The program allows third-party entities to use Aadhaar for authenticating digital signatures through the unified payment interface and privacy-protected data sharing app, eSign.
Paytm is one of 11 organizations that received in principle payment bank licences from the Reserve Bank of India in 2015.
“We believe India Stack is a great foundation of technology resources capable of building useful services for the masses,” said Paytm CEO Vijay Shekhar Sharma. “Aadhaar is the foundation of it and we can leverage it from day one.
“With eKYC, the Paytm payment bank will have a great start with an Aadhaar-linked savings account. It also helps us build superior AML (anti-money laundering) and fraud protection systems as each customer is biometrically verified.”
The eKYC provides verification of a customer’s identity and address by comparing fingerprint or iris scans with biometrics stored in the Aadhaar database.
Paytm is aiming to acquire over 25 million KYC customers in the coming year, said Sharma.